TPREL and BoB Sign MOU for Rooftop Solar Financing Under PMSGMBY

Current Context: Tata Power Renewable Energy Limited (TPREL) and Bank of Baroda signed a Memorandum of Understanding (MoU) on February 6, 2025, in Mumbai.

• Key Points:
• Aim: To finance residential rooftop solar systems under the Pradhan Mantri Surya Ghar Yojana (PMSGY).
• Loan Amount: Up to Rs 6 lakh.
• Interest Rate: Starting at 7% per annum, with both fixed and floating rate options.
• Income Documentation: No documentation required for loans up to Rs 2 lakh.
• Margin Contribution: 10% for loans up to Rs 2 lakh, 20% for loans above Rs 2 lakh.
• Collateral: Loans are collateral-free.
• Repayment Tenure: Flexible repayment tenure of up to 10 years.

Question:

1 What is the primary aim of the MoU signed between Tata Power Renewable Energy Limited (TPREL) and Bank of Baroda?

• A) To provide loans for electric vehicle (EV) charging stations
• B) To finance residential rooftop solar systems under the Pradhan Mantri Surya Ghar Yojana (PMSGY)
• C) To fund large-scale solar power plants
• D) To offer financial assistance for wind energy projects

Answer: B) The MoU focuses on financing residential rooftop solar installations under the government’s PMSGY scheme, promoting renewable energy adoption at the household level.